Tonight looks like there maybe a bit of a tug of war to bring the price below 132.75 zone or above 134.00.
I prefer selling from here and will place my order to sell GBP/JPY @ 133. 48 with TP 132.85 and SL 134.03. My reasoning is as follows.
1. There are 3 trend lines providing resistance between 133.50 - 133.70. The break below 133.90 hasn't resulted in a significant bounce so in my opinion a push lower may have to play out before buyers step in to to halt the decline.
2. The price has broken below the100 EMA on the 5 min - 30 min charts and is almost touching it on the hourly. The fact that the price has not been able to climb back over the EMA on the 5 -30 min charts and has not bounced significantly on the hourly as it approaches the EMA signals to me that there is some room for the price to fall before it can go up.
3. The 50.0 Fib level sits at 132.75 and looks to be magnetic right now. 133.95 andthe 61.8 Fib level should provide additional resistanceon any further bounces. Tonight looks like a fight to bring the pair back up over 134.00 or send it lower through 133.80. In my opinion a move down should come first so from these levels I am bearish.
SOLD @ 133.35 with TP 132.85
ReplyDeleteP/L RESULTS = + 50 pips.